In this article, we discuss 5 best gambling stocks to buy now. If you want to read about some more gambling stocks, go directly to 15 Best Gambling Stocks To Buy Now.
5. International Game Technology PLC (NYSE:IGT)
Number of Hedge Fund Holders: 34
International Game Technology PLC (NYSE:IGT) operates and provides gaming technology products and services. It is one of the top casino stocks to invest in. On September 20, the company announced that Global Solutions, a unit of the firm, had been selected by the Ontario Lottery and Gaming as the primary technology provider of self-serve lottery terminals. The firm said this deal marked the first time that self-serve technology will be available to lottery players in Ontario. The contract in this regard will run till June 2027.
At the end of the second quarter of 2022, 34 hedge funds in the database of Insider Monkey held stakes worth $263.5 million in International Game Technology PLC (NYSE:IGT), compared to 34 in the preceding quarter worth $413.6 million.
In its Q4 2021 investor letter, Palm Harbour Capital, an asset management firm, highlighted a few stocks and International Game Technology PLC (NYSE:IGT) was one of them. Here is what the fund said:
“The second largest contributor was International Game Technology PLC (NYSE:IGT), the Italian American lottery and slot machine company, which we introduced in our first quarter 2020 letter and which contributed 78 basis points to performance. Early in the quarter, IGT’s main competitor, the highly levered Scientific Games, entered into a definitive agreement to sell its lottery business to Brookfield Business Partners for total consideration of $6.1 billion in cash and contingent payout. At $471 million last twelve months EBITDA (admittedly COVID affected, excluding unallocated central costs), Scientific Games lottery business was sold at trailing 13.0x. Scientific Games exited lottery business to optimize the portfolio and aggressively de-lever its balance sheet. We believe IGT’s lottery business to be much higher quality and certainly larger. If we were to use a similar metric for IGT, including all corporate costs but excluding Gaming and Digital and Betting, we would have around 90% upside. We are willing to bet the Gaming and fast growing Digital and Betting segments are worth something as well. It seems the sell-side willfully ignores this transaction and sticks with their 7-8x EV/EBITDA valuation.
The company reported third quarter earnings with sales up by 21% year on year, EBIT up by 144% and leverage down to 3.8x from 6.4x at year-end 2020. Total Adjusted EBITDA improved by 42% with margin gaining 618 basis points. Following the recovery, management reinstated the dividend of $0.20 per share…(read more)”
4. Boyd Gaming Corporation (NYSE:BYD)
Number of Hedge Fund Holders: 35
Boyd Gaming Corporation (NYSE:BYD), together with its subsidiaries, operates as a multi-jurisdictional gaming company. The firm is among the best casino stocks to invest in. Boyd Gaming Corporation (NYSE:BYD) is slowly building a dividend profile. On September 15, the firm declared a quarterly dividend of $0.15 per share, in line with previous. The forward yield was 1.12%. The dividend is payable to shareholders by mid-October and early November.
On September 23, JMP Securities analyst Jordan Bender initiated coverage of Boyd Gaming Corporation (NASDAQ:BYD) stock with an Outperform rating and a $65 price target, highlighting that no connection could be drawn between the valuation of the firm and gaming fundamentals.
At the end of the second quarter of 2022, 35 hedge funds in the database of Insider Monkey held stakes worth $898 million in Boyd Gaming Corporation (NYSE:BYD), compared to 40 in the previous quarter worth $1 billion.
In its Q2 2022 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Boyd Gaming Corporation (NYSE:BYD) was one of them. Here is what the fund said:
“Boyd Gaming Corporation (NYSE:BYD) is one of the largest and most successful casino entertainment companies in the U.S. The company owns and operates 28 casino gaming properties in 10 states with a large presence in Las Vegas. Business conditions have been strong, yet the shares are valued at only 6 times 2022 estimated cash flow versus a long-term average of more than 9 times cash flow. The company maintains a strong and liquid balance sheet. Insiders own approximately 27% of the company. We believe Boyd is a compelling acquisition target.”
3. Las Vegas Sands Corp. (NYSE:LVS)
Number of Hedge Fund Holders: 42
Las Vegas Sands Corp. (NYSE:LVS), together with its subsidiaries, develops, owns, and operates integrated resorts in Asia and the United States. The firm is among the best casino stocks to invest in. On July 20, the firm posted earnings for the second quarter of 2022, reporting a revenue of more than $1 billion, down over 10% compared to the revenue over the same period last year but beating estimates by $100 million.
On September 26, Jefferies analyst David Katz upgraded Las Vegas Sands Corps. (NASDAQ:LVS) stock to Buy from Hold with a price target of $50, up from $40, noting that Macau recovery was a positive catalyst for the shares.
Among the hedge funds being tracked by Insider Monkey, Chicago-based firm Citadel Investment Group is a leading shareholder in Las Vegas Sands Corp. (NYSE:LVS), with 4.1 million shares worth more than $138.6 million.
In its Q2 2022 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Las Vegas Sands Corp. (NYSE:LVS) was one of them. Here is what the fund said:
“Certain travel-related businesses remain cyclically depressed not secularly challenged and should rebound as economic strength re-emerges. For example, the business operations of Macau-centric casino and gaming companies such as Las Vegas Sands Corporation (NYSE:LVS) have yet to recover due to the ongoing COVID-19 challenges in China. We expect business to rebound sharply when economic growth recovers just as it did in Las Vegas. Las Vegas Sands Corporationis a global leader in the development and operation of luxury casino resorts in Macau and Singapore, and it maintains a liquid and investment grade balance sheet. It is currently valued at a significant discount to our assessment of replacement cost, and the company’s Macau operations are valued at only 7 times estimated cash flow.”
2. MGM Resorts International (NYSE:MGM)
Number of Hedge Fund Holders: 46
MGM Resorts International (NYSE:MGM), through its subsidiaries, owns and operates casino, hotel, and entertainment resorts in the United States and Macau. The company is one of the most prominent casino stocks to invest in. On September 28, MGM Resorts International (NYSE:MGM) announced that it had entered into a partnership with ExteNet Systems to design, build, and operate the advanced in-building signal and connectivity solutions of the latter across all properties of the former throughout the US.
On September 26, Citi analyst George Choi maintained a Buy rating on MGM Resorts International (NASDAQ:MGM) stock and raised the price target to $58.50 from $58, noting the resumption of Macau-bound e-visas in late October and early November is a positive surprise.
At the end of the second quarter of 2022, 46 hedge funds in the database of Insider Monkey held stakes worth $1.1 billion in MGM Resorts International (NYSE:MGM), compared to 59 in the preceding quarter worth $2.18 billion.
In its Q2 2022 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and MGM Resorts International (NYSE:MGM) was one of them. Here is what the fund said:
“MGM Resorts International (NYSE:MGM) is a leading global casino and entertainment company. At its recent price of only $30 per share, we believe MGM is valued at a significant discount to our reasonable $50 per share estimate of the sum-of-the-parts value of its business. Further, the company’s domestic operations are valued at a 18% free-cash-flow yield. Paul Salem, Chairman of the Board, recently acquired shares.”
1. Caesars Entertainment, Inc. (NASDAQ:CZR)
Number of Hedge Fund Holders: 59
Caesars Entertainment, Inc. (NASDAQ:CZR) operates as a gaming and hospitality company in the United States. The firm features on the list of best casino stocks to invest in. On August 2, the firm posted earnings for the second quarter of 2022, reporting a revenue of more than $2.8 billion, up over 12% compared to the revenue over the same period last year and beating estimates by $30 million.
On August 3, Deutsche Bank analyst Carlo Santarelli maintained a Buy recommendation on Caesars Entertainment, Inc. (NASDAQ:CZR) but lowered the price target on the shares to $64 from $90 after the Q2 results. The analyst slashed estimates but said that Las Vegas strip trends have remained resilient.
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm HG Vora Capital Management is a leading shareholder Caesars Entertainment, Inc. (NASDAQ:CZR) with 5 million shares worth more than $191.5 million.
In its Q4 2021 investor letter, Carillon Tower Advisers, an asset management firm, highlighted a few stocks and Caesars Entertainment, Inc. (NASDAQ:CZR) was one of them. Here is what the fund said:
“Caesars Entertainment, Inc. (NASDAQ:CZR), a diversified casino-entertainment and resort company, underperformed in the period as its quarterly earnings update was viewed as disappointing by investors. The firm highlighted a number of one-time headwinds that ultimately weighed on margins, as well as some negative impacts brought on by the surge in COVID cases. Despite this, we believe that the sizable overall margin improvements Caesars has realized coming out of the pandemic will ultimately prove sustainable in the long run.”
You can also take a peek at 11 Best Consumer Stocks To Buy Now and 10 Most Shorted Stocks in the World.
